UPDATE 1-March Networks to be bought for C$90.1 mln

Dec 9 (Reuters) - Canada’s March Networks Corp , agreed to be bought by China’s Infinova for C$90.1 million ($88.63 million) in an all cash deal, as Infinova looks to access the company’s surveillance technology and expand its customer base.

March Networks, which makes video surveillance equipment for companies like Wal-Mart, said Infinova has offered it C$5 per share, which is a 2.24 percent premium to March’s Thursday closing price.

The deal is expected to close in the fourth quarter of fiscal 2012, the company said in a statement.

Separately, March Networks also announced its quarterly financial results. For the second-quarter, the company reported a loss of C$2.3 million, or 13 Canadian cents per share, compared with earnings of C$1.2 million, or 7 Canadian cents per share, a year ago.

Infinova, which manufactures security products like video cameras and other surveillance and security equipment, is listed on the Shenzen stock exchange.

Shares of March Networks closed at C$4.89 on Thursday on the Toronto Stock Exchange. ($1 = 1.0166 Canadian dollars) (Reporting by Maneesha Tiwari in Bangalore; Editing by Hezron Selvi)